View all news

Mathis Partners, LLC Files Voluntary Petition for Reorganization


ATLANTA, GA, Apr 01, 2008 (MARKET WIRE via COMTEX News Network) -- Mathis Partners, LLC ("Mathis"), a Georgia limited liability company, today announced that it had filed a voluntary petition for reorganization in the Georgia courts. The action was in response to a foreclosure proceeding scheduled for April 1, 2008, which was initiated by Mathis' lender, Haven Trust Bank ("Haven Trust"), on the single project owned by Mathis. The foreclosure proceedings were initiated when Mathis and Haven were unable to reach an agreement with respect to certain modifications sought by Mathis on an approximately $5.0 million loan relating to the Gates of Luberon residential development project in Forstyth County, Georgia (the "Project").

Mathis is a single purpose limited liability company, which is a wholly owned subsidiary of Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the "Company"). Mathis was formed by Parker Chandler Homes, Inc. ("PCH") to develop the Project with Haven Trust as its lender. The formation of Mathis and the initiation of financing with Haven Trust pre-date the acquisition of PCH by Comstock from PCH founders James Parker and Andrew Chandler.

"For several months we have been trying to reach agreement with Haven Trust regarding loan modifications that would allow for successful completion of the project," said Bruce Labovitz, Chief Financial Officer of Comstock. "This is a chapter 11 bankruptcy filing of the Mathis Partners entity only and does not affect the ability of Comstock to conduct the remainder of its business in any way. This situation is not indicative of the relationships we have with our other lenders. Other than Haven Trust, we have a group of lenders made up principally of large, well capitalized, regional and national banks that have a good understanding of current market conditions and have demonstrated a commitment to Comstock. We remain committed to the Gates of Luberon project and hope to be afforded the time necessary to complete the development."

About Comstock Homebuilding Companies, Inc.

Established in 1985, Comstock Homebuilding Companies, Inc. is a publicly traded, diversified real estate development firm with a focus on affordable priced for-sale residential products. Comstock builds and markets single-family homes, townhouses, mid-rise condominiums, high-rise condominiums, mixed-use urban communities and active adult communities. The company currently markets its products under the Comstock Homes brand in the Washington, DC; Raleigh, North Carolina; and Atlanta, Georgia metropolitan areas. Comstock Homebuilding Companies, Inc. trades on NASDAQ under the symbol CHCI. For more information on the Company or its projects please visit

Cautionary Statement Regarding Forward-Looking Statements

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "expects," "projects," "anticipates," "estimates," "believes," "intends," "plans," "should," "seeks," and similar expressions, including statements related to Comstock's expected future financial results and anticipated growth in the Washington, DC housing market, are forward- looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, economic, market and competitive conditions affecting Comstock and its operations and products, risks and uncertainties relating to the market for real estate generally and in the areas where Comstock has projects, the availability and price of land suitable for development, materials prices, labor costs, interest rates, Comstock's ability to service its significant debt obligations, fluctuations in operating results, anticipated growth strategies, continuing relationships with affiliates, environmental factors, government regulations, the impact of adverse weather conditions or natural disasters and acts of war or terrorism. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's most recent form 10-K, as filed with the Securities and Exchange Commission on March 24, 2008. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Categories: Press Releases
View all news